A new style combination mortgage offering a 1.75% discount from the Society's Standard Variable Rate for the first 2 years, giving an initial rate of 4.99%, followed by a capped rate of 5.75% until November 2009 will be launched by Leeds & Holbeck Building Society on Saturday 21 August.
The loan, which is unique in the marketplace, has no up-front fees and
allows up to 10% capital repayments each year. It is available up to 95%
loan to value, with no higher lending fee up to 90%. The valuation fee can
be added on completion, making it easier for first-time buyers.
Commenting on the new loan, Corporate Relationship Manager, Jeff Kirk said,
"This unique loan offers piece of mind for borrowers. It's unusual
combination of a discounted rate followed by a cap means their repayments
will not only start low, but will remain at or below the cap until November
2009. First time buyers will also appreciate not having to pay up front
fees. With interest rates possibly reaching a peak in the next few months,
we believe this product offers intermediaries a useful alternative to fixed
rates."
